It
did. Instead of competing with the government prices, it remained
aloof. The government was not in a position to operate prices or
control them. Hard times fell upon South Africa. The diggers were in
desperate straits. The government fell and a coalition party led by
General Smuts stepped in. He made an agreement with the corporation,
accepting a production quota the same as any of the other members, such
as De Beers.
A
little later, in 1933. the Diamond Producers' Association was formed,
consisting of De Beers and other producing companies, the Diamond
Corporation, and—significantly—the government of the Union of South
Africa. This went a long way toward enabling the corporation to
stabilize prices. But not far enough. Another step was necessary.
So
in June. 1933, the Diamond Corporation formed-the Diamond Trading
Company, to purchase and sell diamonds belonging to members of the
Diamond Producers' Association. Thus it became possible to market
almost the whole. of the world's diamond production through one channel
and under one control.
The
Trading Company is located in a staid-looking building called St.
Andrews House, which is in Holborn Viaduct, London. You will ask, then:
Why is. this chapter headed "The House in Charterhouse Street"? It is
because in the minds of diamond men throughout the world "Charterhouse
Street" is the headquarters in spirit even if not in fact, and
presently we shall tell you why.
Through
the doors of this building, St. Andrews House, and of its predecessor
in Charterhouse Street, have passed the greatest accumulations of
wealth in the world. In one year in the Charterhouse Street house
7,000,000 carats of diamonds came by ordinary post. It was from there
that the diamonds, usually in the rough, went out to the cutters and
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